Capital Allowances Act 1990 (repealed)

[F1 38D Exclusion of Chapter where company’s limit not exceeded. U.K.

(1) Subject to section 38F(3), this Chapter does not apply for the purposes of corporation tax to any expenditure by a company unless that expenditure is—

(a) expenditure incurred in a chargeable period the relevant limit for which is exceeded in relation to that company; or

(b) expenditure excluded from the operation of that limit.

(2) For the purposes of this section the relevant limit for a chargeable period is exceeded in relation to a company only if the total amount of capital expenditure which—

(a) is incurred by that company in that period,

(b) is not excluded from the operation of that limit, and

(c) is or, disregarding this section, would be expenditure to which this Chapter applies,

exceeds the limit applying to that period.

(3) Subject to subsection (5) below, the limit applying for the purposes of this section to a chargeable period of twelve months is £100,000.

(4) Subject to subsection (5) below, the limit applying for the purposes of this section to a chargeable period of less than twelve months is the amount given by a proportional reduction of £100,000.

(5) Where, in a chargeable period, a company has one or more associated companies, the limit applying to that period for the purposes of this section shall be the amount produced by—

(a) taking the amount given for that period by subsection (3) or, as the case may be, subsection (4) above; and

(b) dividing that amount by one plus the number of those companies.

(6) Subsections (4) and (5) of section 13 of the principal Act (which identify the companies that are to count as associated companies for the purposes of section 13(3) of that Act) shall apply for the purposes of subsection (5) above as they apply for the purposes of subsection (3) of that section.

(7) Subsections (5) and (8) of section 38C apply for the purposes of this section as they apply for the purposes of that section.]

Textual Amendments

F1 Pt. 2 Ch. 4A inserted (with application in accordance with Sch. 14 para. 10 of the amending Act) by Finance Act 1997 (c. 16), Sch. 14 para. 2

Modifications etc. (not altering text)

C1 S. 38D modified by 1993 c. 34, s. 93(5) (as substituted (with effect in accordance with s. 105(2)-(5) of the amending Act) by Finance Act 2000 (c. 17), s. 105(1))